An Explanation Of The Strategic Management Process

1655 WordsJul 29, 20167 Pages
1. An explanation of the strategic management process Defining the current business, establishing strategic objectives, formulating strategy, strategy implementation and execution. Definition of Strategic Management Strategic management is the process where leaders establish an organization’s long-term direction, set the specific performance objectives, develop strategies to achieve these objectives in the light of all external and internal changes, and undertake effective strategies to manage these changes and execute action plans. Defining the Business What is the nature of our business and what will it be? This is the fundamental direction setting question facing the leadership team. In addressing these questions,…show more content…
Both short-run and long-run objectives are necessary. The strategic objectives for the organization should at minimum specify: • the market position and competitive standing the organization aims to achieve • annual profitability targets • key financial and operating results to be achieved through the chosen activities • any other milestones by which strategic success will be measured Formulating Strategy The end component of strategic management and discloses how the intended results will be accomplished. This include both the short-run and long-run results. Objectives are the “ends” and strategy is the “means” of achieving them. How to respond to changing conditions • what to do about shifting customer needs and emerging industry trends • which new opportunities to pursue • how to protect against competitive pressures and other externally imposed threats How to allocate resources • divisions, business units and functional departments • decisions that spur capital investment and human resources in the strategic plan. How to compete • how to develop customer appeal • how to position the firm against rivals • to emphasize some products and de-emphasize others • meet specific competitive threats Actions and approaches that are necessary implement the strategic management process in all the major functional areas,
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